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Macroprudential Policy: Taming the wild gyrations of credit flows, debt stocks and asset prices
Macroprudential Policy Taming the wild gyrations of credit flows debt stocks and asset prices Author:Richard Barwell Financial Crises have plagued economies around the globe for centuries yet no satisfactory policy solution has been found to prevent them re-occurring. Macroprudential policy, the intellectual response to financial crisis, may provide the solution to this perennial problem. However, what this means in practice is subject to disagreement. Macropr... more »udential Policy is the first book to provide a coherent and comprehensive coverage of the issues of why, when and how policy makers should intervene.
Barwell brings his considerable experience of working in the financial sector to bear in examining the practical justification for the new regime, the institutions of macroprudential policy, the instruments at policymakers' disposal, and a discussion of how policy makers will go about discharging their responsibilities. The book reviews the economic foundations of macroprudential policy. Conventional macroeconomics is based on assumptions which may work for the analysis of price stability and the conduct of monetary policy, but more or less rules out the possibility of financial crises. This book introduces an alternative macroeconomics where crises can flourish, identifying the market failures which justify interventions to stabilize the system.« less